China blocks Meta’s $2 billion AI deal, citing security concerns
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China has moved to block Meta’s $2 billion acquisition of AI startup Manus, citing national security concerns and raising fresh uncertainty over cross-border technology deals.
The National Development and Reform Commission ordered the cancellation of the deal in a brief statement on Monday, without providing detailed reasons. The move comes weeks before an expected summit between US President Donald Trump and Chinese President Xi Jinping.
The acquisition, which had largely been completed, had drawn criticism in China over concerns about the transfer of advanced technology to the United States. Regulators had launched a probe soon after the deal was announced in December, examining potential violations related to foreign investment and technology exports.
The decision complicates matters for Meta, as Manus employees have already joined the company, funds have been transferred, and operations integrated, including staff relocations to Singapore.
The move is part of a broader tightening of oversight by Beijing over its technology sector. Authorities have recently advised firms such as Moonshot AI and StepFun to avoid accepting US investment without approval. Similar restrictions have been indicated for ByteDance.
The crackdown could impact China’s AI ecosystem, which has long relied on foreign capital from investors, including venture firms and institutional funds. Analysts say the restrictions are aimed at preventing the outflow of sensitive technologies as Chinese startups expand globally.
The blocked deal is also a setback for Meta’s efforts to strengthen its position in artificial intelligence, where it competes with companies such as Microsoft, Google, OpenAI, and Anthropic.
Manus, founded by Chinese entrepreneurs but incorporated in Singapore, had rapidly grown after its launch in March 2025, developing AI agents capable of automating complex tasks. The company had crossed $100 million in annualised revenue before the acquisition was announced.